Pages

Thursday, September 22, 2011

EuroCrats: It is Our Policy to Fail

The handling or mishandling of the debt crisis by the EuroCrats proves one thing. The Process is the Problem.

From the IMF we learn that the set of policy choices that are economically viable and politically feasible is shrinking. That is a bold admission.

Further, the IMF acknowledges the market’s negative response but chooses to stay the course. This is wrong.

Still, the bold admission is a good thing. Oftentimes people don’t take bold action until a crisis is impending. Bureaucrats never do.

Now with Belgium, Italy, and Spain heading toward a crisis, why embrace a proven Policy of Failure? One glaring point: A cash infusion into banks that suffered losses due to the debt crisis will only cause the banks to continue to lose what others infuse.

Meanwhile, there is a call for taxpayers to bolster…..! Any call for taxpayers to bolster anything is a lose—lose situation.

If the plan fails, the crisis deepens.

If the plan succeeds, those who pay for the success of others will harbour a deep resentment. If you don’t believe me: Parliament Hampers Merkel Deal Making.

EuroBanks stand to lose €630 Billion. Banks are starting to not trust each other or lend to each other. That is not a good sign either.

The IMF goes on to say that the Global Credit Crisis moved into the Political Phase. Therein lies the punishment for using political considerations to solve the problem in the first place.

Greece and Europe suffer from problems of Austere Proportions.

As I previously stated, “Analysts conceded a €110 Billion bailout for Greece on the assumption that the Greek economy would grow. Then, they called for sanctions to punish Greece because their assumptions were wrong.”

The austerity measures to be imposed by (upon) Greece include a move to reduce public employment.

“There are no unintended consequences, only unwanted consequences.” –Slim Fairview

Encourage, promote, and support, entrepreneurship for the Greek people.

The Nanny-State mentality in Europe has less to do with benefits and more to do with business. It is easy for a society to become complacent if the jobs are already there whether provided by Big Government or by Big Business. SMEs provide jobs, growth, economic stimulus, and prosperity. Don’t believe me? The headline in the NY Times reads: India Nurtures Entrepreneurship.

Twitter Updates 2.2: FeedWitter

Follow by Email

LinkedIn

Followers

Slimviews

Total Pageviews

About Me

Armed only with an analytical mind and the ability to speak in metaphors, I attempt to explain the events of the day as I view them through the magic glasses my parents gave me over 50 years ago. Regards, Slim